We apply a thorough due diligence process to assess the potential of habitats to be included in the habitat fund. An assessment is made on 6 verticals to measure where we can have the most impact, in order to transform vulnerable ecosystems into protected and prosperous habitats.
Let's take a look at how the due diligence process is undertaken;
The 2 Due Diligence stages
Macro country risk and investment assessment
In this phase, the macro conditions surrounding the investment will be assessed. Factors include geopolitical stability, economic risk, nature-based market maturity, partner potential and fund structuring considerations.
Project analysis based on 6 verticals
A phased approach is taken to assess the property on each vertical. Beginning with a preliminary scoping, then a site visit followed by an in depth analysis in conjunction with specialists and project partners.
On each vertical a ranking is given between 1 and 5. 1 Being the lowest and 5 the highest ranking; meaning, the value has been fully unlocked, developed or in a sustainable equilibrium.
The fund's goal is to unlock the potential within each vertical from its baseline ranking to a fully developed level 5.
Keystone species as a metric
We use keystone species as a metric for a healthy ecosystem. Without a fully functioning ecosystem, apex predators or mega-fauna such as elephants and rhinos would not be able to exist naturally. Simultaneously, an ecosystem would not be in balance without their presence.
The 6 verticals
Is the land size sufficient to support healthy genetic diversity? Does it hold degraded or vulnerable biodiversity with additionality potential?
Is there Local community support, proper agreements and governance and the opportunity for inclusion and empowerment?
Are there existing revenue streams that can be improved? Or is there an opportunity for the development of nature-based businesses which can finance ongoing long-term conservation as well as deliver investor returns?
Is there existing infrastructure or is there the potential to upgrade to a fully serviced site; including the necessary roads, power and water supply, waste treatment, building facilities, and security?
What are the existing land entitlements and is there the potential to legally protect indefinitely as a nature reserve?
The only vertical that cannot be altered or improved. Magnificence talks to the indescribable and unquantifiable essence of a landscape.